Advance Payments Program

ACMA is now accepting applications for the 2017/18 APP program year! The Federal Government guaranteed ‘Advance Payments Program’ (APP) advances up to 50% of the market value of your product during production, to be repaid as the product is sold. ACMA administers the program in Nova Scotia, New Brunswick, Newfoundland & Labrador, and P.E.I. with advances available for the following commodities:

The first $100,000.00 advanced is interest free and an additional $300,000.00 is available at an interest rate of prime minus ¼%. This program has helped many producers. Here is how the program can work for you.

To qualify for funds under the Advance Payments Program.

A producer MUST be enrolled in AgriStability or Production Insurance. These BRM programs provide security for the APP advance. Production Insurance is only available for crop production.

As a corporation or partnership the majority of interest held in the company must be by Canadian citizens or permanent Canadian residents and one individual must be of the age of majority. The company must own the agricultural product and be responsible for its marketing.

As an individual producer you must be either a Canadian citizen or permanent Canadian resident, be of the age of majority, own the agricultural product and be responsible for its marketing.

How to determine your eligible advance amount?

Production calculations are done by multiplying the quantity of units you produce by the advance rate approved for the 2017/2018 APP year. Please refer to the forms below for your particular commodity’s current rate.

Advances are eligible for up to 100% of your 2017 AgriStability reference margin, or 60% of your Production Insurance insured value, on your first installment. Second installments can be issued to “top up” your advance to your production calculations. Please refer to your commodity’s forms below for details on second installments.

The eligible amount to be advanced will be either your production calculation or your limitation from AgriStability/Production Insurance, whichever is less.

$400,000.00 is the maximum advance allowed for any corporation, shareholder or individual.

You may obtain an advance from other administrators for additional commodities all within the same program year.

How is your advance paid back?

For most commodities, repayments are due as you market your product. Payment is due within 30 calendar days of receipt of payment or 60 calendar days from delivery to buyer, whichever is earlier. You have 30 calendar days from your date of payment to submit proof of sale, but no later than the end of the production period.

For continuous flow advances, including all hog/weaner advances, repayments are due 12 months from the date of advance but no later than September 30, 2018, even if this date is less than 12 months. You have 30 calendar days from your date of payment to submit proof of sale but no later than September 30, 2018.

Late payments, or payments without proof of sale, are permitted until the end of the production period (refer to your commodity’s forms for dates) but penalties will be applied.

Please call if you have any concerns about late payments or lack of proof of sale so we can let you know all of your options.

Any advance amount exceeding the interest free portion of $100,000.00 will be charged an interest rate of prime minus ¼% compounded. Interest will be collected with your final payment on or before the end of your production period.

As your repayments occur they are applied to the interest free loan portion first.

How can you apply for the Advance Payments Program?

Applications are available below in PDF format or you can contact the ACMA office at 1-902-895-0581.

We are now accepting applications for the 2017/18 APP year for all commodities, although Farm Raised Fur Advances cannot be issued before May 1, 2017.

The application fee is $350.00 or 3.0% of the total advance amount, to a maximum of $1,200.00, plus 15% HST which will be deducted from your advance amount.

Storage Report: Due December 31, 2016 for Grain & Oilseed, Maple Syrup, Blueberry, and Apple producers who have not sold all of their product by December 31, 2016 and have decided to store it for sale at a later date.Storage Report Due December 31, 2017